Knowing When to Expand Your Business

May 24, 2018

Many small business owners dream of the day when they can grow and expand their businesses. But how do you know when it’s time to expand? Fortunately, there are a few signs to watch out for that may indicate it’s time to expand. Let’s explore a few of those signs to look for.

You’ve Met Your Small Business Goals

When you first started out as a small business, you probably had a laundry list of goals and a business plan you wanted to meet over time. Have you met those goals? If you’re unsure, take some time to examine your business plan, overall performance, and results. To get a good idea if you’ve met your goals, take a peek at your sales. Are they where you want them to be? Are they exceeding your expectations? If you’ve met or are exceeding your goals, it may be time to take the leap and expand.

You’ve Done Your Homework

If you’re thinking about expanding, you have to do your research to figure out how your business is going to expand. Are you going to test out a new market? Will you need a larger building to work from, or will you have to hire more staff? Once you do your research, you can make a game plan and go from there.

You Have the Money

It should go without saying that if you don’t have the money, you probably shouldn’t be attempting to expand. Before growing your business, it’s important to have your finances in order by regularly monitoring expenses, ROIs, and your overall bottom line if your future expansion is to succeed. After all, expanding a business takes money, and oftentimes, it can take time for your business to see profits from the expansion. That said, it’s a good idea to have the necessary funds set aside to keep the business operational until more profits begin rolling in.

You Have Customers

What good would an expansion be if you don’t have a customer base? Plain and simple, you have to have customers in order to expand as a business. If you already have a loyal customer base and new customers seem to be coming to you left and right, that’s a big sign that your business may benefit from expanding to offer more products and services.

You Have a Team Behind You

Having a reliable team of employees behind you will make an expansion easier. Oftentimes, business expansions mean you as a business owner will have to relinquish a little bit of control and rely on trustworthy team members to get the job done so you can focus on the successful expansion of your business. Unsure if it’s time to start relinquishing some of that control? Well, do you feel overwhelmed and struggle to complete all your day-to-day tasks on time because business is booming? If so, it may be time to consider enlisting help.

By knowing what signs to look for, you’ll tackle any business expansion with ease.